U.K. Economy Is Expected to Struggle More Than Peers
November 11, 2020
The U.K.’s economic recovery is on track to lag behind other European nations and the U.S. The nation’s economy grew by 15.5% in the third quarter, far less than other advanced economies. The nation recently enacted a new round of lockdown measures as it struggles to contain the coronavirus pandemic. At the same time, officials are trying to navigate the protracted separation from the European Union, with uncertainty mounting that a trade deal can be reached before the year-end deadline.
This combination of challenges means that the U.K. is likely to see further economic contraction in the fourth quarter. The International Monetary Fund is forecasting that the U.K. is likely to see the sharpest economic decline of any advanced economy, and that the nation may take longer to recover. The Bank of England expects it will take until 2022 for the economy to recover to its pre-pandemic size.